The Defense Department’s top acquisition official Nov. 27 approved the Air Force request to buy as many as 36 Evolved Expendable Launch Vehicle (EELV) cores from the United Launch Alliance (ULA) for the EELV program, which aims to ensure the government has more affordable and reliable access to space.
The ULA is a joint venture between Boeing [BA] and Lockheed Martin [LMT].
“I authorize the Air Force to negotiate with United Launch Alliance (ULA) based on an acquisition strategy that plans to procure up to 36 EELV cores across five years (FY 2013-FY 2017) from ULA and up to an additional 14 cores from ULA under the Variation in Quantity and Configuration provisions if competition is not viable at time of need,” Frank Kendall, undersecretary of Defense for Acquisition Technology and Logistics, wrote in an acquisition decision memorandum (ADM).
In early October, the Air Force awarded ULA a $1.2 billion cost-plus-incentive-fee and cost-plus-fixed-fee contract for Delta IV and Atlas V launch capability, the bridge that covers launch-related activities and integration for FY 2013 or until the larger EELV block buy is negotiated or awarded (Defense Daily, Oct. 2).
Kendall said, “My intent with this decision is to maintain required mission assurance, obtain the positive effects of competition as quickly as possible, and also reduce the cost of the launch services we much require from ULA.”
Kendall said until the Acquisition Program Baseline is approved, the air service may not exceed the obligation authority established by the ADMs of July 12 and Sept. 25.
Further, Kendall directs the Air Force to “aggressively” introduce a competitive procurement environment in the EELV program by competing as many as 14 cores with initial contract awards as early as FY 2015 for missions that can be flown as early as FY 2017.
The ADM listed three action items for the Secretary of the Air Force.
First, to submit for Kendall’s approval the date or events triggering the competitive Request for Proposals (RFP) release for the 14 cores that are available for competition. Before the re-approval of Milestone C and before releasing the RFP, the service must provide an acquisition strategy for approval addressing procuring as many as 36 EELV cores and for launch services competition.
Also, the Air Force must act to complete missions so as to start awarding them as soon as possible after a new entrant is certified for the EELV program. After a successful certification launch for a new entrant, the Air Force must consider awarding an early integration contract to that new entrant for “one or more” candidate satellite missions.
Finally, the Air Force must provide EELV detailed program assumptions for the development of the Milestone C (MS C) baseline to the Director, Cost Assessment and Program Evaluation (D, CAPE) in writing.
Kendall requests D,CAPE use a streamlined process to develop an Independent Cost Estimate within 15 working days of receiving the Air Force’s program assumptions and consistent with his decision on quantity and rate commitment in support of the MS C re-approval decision.